Improving Liquidity for Independent Auto Dealers May Be Key to Heading off Auto Finance Credit Crisis, GDNAuto's Mike Sheridan Says

Apr 01, 2008 (BUSINESS WIRE) -- -- Global Debt Network Automotive:

WHAT: Economist Lawrence Lindsey, president/CEO of The Lindsay Group, and former Treasury Secretary/Cerberus Capital Management Chairman John Snow told CNBC's Joe Kernen last week that auto finance could be "the next domino to fall" in the wake of the subprime mortgage crisis and reinforced the importance of the availability of auto credit to the nation's economy. (Click here to view: http://www.cnbc.com/id/15840232?video=698240023) A new California company already is taking steps to ensure that consumers have ongoing access to auto loans even if financial institutions clamp down on their lending to prime, non-prime and sub-prime borrowers. Improving liquidity for the nation's independent auto dealers is critical, says the founder and president of Global Debt Network Automotive, the first nationwide auto loan portfolio auction platform developed for auto dealers, banks, finance companies, credit unions and hedge funds to come together to buy and sell performing and non-performing auto loan portfolios. WHO: Mike Sheridan, founder & president, Global Debt Network Automotive (GDNAuto). Sheridan is available to address how smaller, local auto dealers and finance companies can step in to fill gaps in auto finance consumer demand should lenders discontinue lending to auto buyers. Sheridan also is available to comment on a recent GDNAuto- sponsored survey conducted by market researcher Synovate that revealed that one-third of American consumers are "extremely" or "somewhat" concerned that the sub-prime mortgage crisis might affect their ability to obtain a car loan. About Global Debt Network Automotive (www.GDNAuto.com) GDNAuto provides auto dealers with a fast, efficient and secure way to auction the auto loans they originate to financial institutions and other portfolio investors. GDNAuto offers a low-cost way for dealers to operate more efficiently and profitably by improving cash flow and providing the liquidity dealers need to purchase inventory and fund daily operations. With GDNAuto, dealers can do it all - including contracting, closing and funding - while protecting the security of confidential customer and dealer information. Benefits for financial institutions and investors: GDNAuto is a fast, efficient and secure way for financial institutions and other purchasers of auto loan portfolios to review, evaluate, price, sell and purchase loan portfolios from auto dealers around the country. GDNAuto provides a secure document management environment where financial institutions can perform due diligence on a loan portfolio, make an offer, write a contract and close and fund a transaction without ever setting foot in a dealership. Benefits for consumers: With credit standards tightening in response to the sub-prime mortgage situation more car buyers are driven to seek financing from their automobile dealer. GDNAuto provides an online venue where dealer-originated consumer auto loans can be packaged and sold to investors and opens the door for automobile dealers to finance more loans to consumers. HOW: For more information, contact: Ken Greenberg Edge Communications, Inc. ken@edgecommunicationsinc.com 818.990.5001

SOURCE: Global Debt Network Automotive

Edge Communications, Inc. Ken Greenberg 818-990-5001 ken@edgecommunicationsinc.com

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